MACD system shows price movements using two moving average lines. Best buy signals occur when prices are well below zero line. MACD histogram provides earlier trend reversal signals. Weekly signals are more important than daily ones
Divergence indicates price and indicator movements that differ. Positive divergence shows price downtrend with rising indicator. Negative divergence indicates price uptrend with falling indicator. Regular divergence signals potential trend reversals. Hidden divergence indicates trend continuation
MACD system shows price movements using two moving average lines. Best buy signals occur when prices are well below zero line. MACD histogram provides earlier trend reversal signals. Weekly signals are more important than daily ones
Moving average creates constant updated average price over specified period. Uptrend indicated by upward-angled moving average line. Crossovers between moving averages can signal buy/sell opportunities. Moving averages can act as support or resistance levels
Highs and lows are crucial for trend prediction in technical analysis. A high is a price peak before correction, while a low is a trough before pullback. These patterns help identify market sentiment and trend direction
MACD is a trend-following momentum indicator developed by Gerald Appel in 1970s. Calculated by subtracting 26-period EMA from 12-period EMA. Signal line is 9-period EMA of MACD line. Best used with daily periods (26/12/9 days default)